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What should be done if the house owner wants to sell his house but he has lost the copy of the house title / geran?

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FYI, the original title is in colour, B&W is DEFINITELY PHOTOSTAT COPY

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Is it advisable to proceed with the sales transaction with a conditional SPA while waiting for the authority to issue a new cop of the title ?

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The lawyer in better position to advise but if the buyer is willing to wait and pay the earnest deposit and sign offer letter with said condition in place, there won't be any liability on either party, as long as the clause that say the deal can continue after the new title is issued by the land office, deposit place in the agency, nobody can sue the other party is it not?

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You may apply to extract a new copy from the land office or you may engage a lawyer to do so.